Title 34.1, Uniform Commercial Code

Control of deposit account. (a) A secured party has control of a deposit account if: (i) The secured party is the bank with which the deposit account is maintained; (ii) The debtor, secured party and bank have agreed in an authenticated record that the bank will comply with instr…

Control of electronic chattel paper. (a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interest in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. (b) A s…

Control of investment property. (a) A person has control of a certificated security, uncertificated security or security entitlement as provided in section 34.1-8-106. (b) A secured party has control of a commodity contract if: (i) The secured party is the commodity intermediary …

Control of letter-of-credit right. A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of cred…

Sufficiency of description. (a) Except as otherwise provided in subsections (c), (d) and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. (b) Except as otherwise provided in subsection (d)…

Scope. (a) Except as otherwise provided in subsections (c) and (d), this article applies to: (i) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; (ii) An agricultural lien; (iii) A sale of accounts, chattel pape…

Security interests arising under article 2 or 2A. (a) A security interest arising under section 34.1-2-401, 34.1-2-505, 34.1-2-711(c) or 34.1-2A-508(e) is subject to this article. However, until the debtor obtains possession of the goods: (i) The security interest is enforceable,…

General effectiveness of security agreement. (a) Except as otherwise provided in this title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors. (b) A transaction subject to this article is sub…

Title to collateral immaterial. Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles or promissory notes, the provisions of this article with regard to rights and obligations apply whether title to collateral is in the…

Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites. (a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time …

After-acquired property; future advances. (a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral. (b) A security interest does not attach under a term constituting an after-acquired prope…

Use or disposition of collateral permissible. (a) A security interest is not invalid or fraudulent against creditors solely because: (i) The debtor has the right or ability to: (A) Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods…

Security interest arising in purchase or delivery of financial asset. (a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if: (i) The person buys a financial asset through the securities intermediary in a transaction in which …

Rights and duties of secured party having possession or control of collateral. (a) Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel pap…

Additional duties of secured party having control of collateral. (a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations or otherwise give value. (b) Within ten (10) days afte…

Duties of secured party if account debtor has been notified of assignment. (a) Except as otherwise provided in subsection (c), this section applies if: (i) There is no outstanding secured obligation; and (ii) The secured party is not committed to make advances, incur obligations …

Request for accounting; request regarding list of collateral or statement of account. (a) In this section: (i) "Request" means a record of a type described in paragraph (ii), (iii) or (iv); (ii) "Request for an accounting" means a record authenticated by a debtor requesting that …

Law governing perfection and priority of security interests. (a) Except as otherwise provided in sections 34.1-9-303 through 34.1-9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest …

Law governing perfection and priority of agricultural liens. While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of an agricultural lien on the farm products.

Law governing perfection and priority of security interests in goods covered by a certificate of title. (a) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods …

Law governing perfection and priority of security interests in deposit accounts. (a) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank. (b) T…

Law governing perfection and priority of security interests in investment property. (a) Except as otherwise provided in subsection (c), the following rules apply: (i) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection,…

Law governing perfection and priority of security interests in letter-of-credit rights. (a) Subject to subsection (c), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of…

Location of debtor. (a) In this section, "place of business" means a place where a debtor conducts its affairs. (b) Except as otherwise provided in this section, the following rules determine a debtor's location: (i) A debtor who is an individual is located at the individual's pr…

When security interest or agricultural lien is perfected; continuity of perfection. (a) Except as otherwise provided in this section and section 34.1-9-309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in sections 34.1-…

Security interest perfected upon attachment. (a) The following security interests are perfected when they attach: (i) A purchase-money security interest in consumer goods, except as otherwise provided in section 34.1-9-311(b) with respect to consumer goods that are subject to a s…

When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply. (a) Except as otherwise provided in subsection (b) and section 34.1-9-312(b), a financing statement must be filed to perfect …

Perfection of security interests in property subject to certain statutes, regulations and treaties. (a) Except as otherwise provided in subsection (d), the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to: (i) A s…

Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights and money; perfection by permissive filing; temporary perfection without filing or transfer of possession. (a) A s…

When possession by or delivery to secured party perfects security interest without filing. (a) Except as otherwise provided in subsection (b), a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money or tangible chattel paper by …

Perfection by control. (a) A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper or electronic documents may be perfected by control of the collateral under section 34.1-7-106, 34.1-9-104, 34.1-9-105, 34.1-9-106 or 34.1-9-…

Secured party's rights on disposition of collateral and in proceeds. (a) Except as otherwise provided in this article and in section 34.1-2-403(b): (i) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange or other disposi…

Effect of change in governing law. (a) A security interest perfected pursuant to the law of the jurisdiction designated in section 34.1-9-301(a)(i) or 34.1-9-305(c) remains perfected until the earliest of: (i) The time perfection would have ceased under the law of that jurisdicti…

Interests that take priority over or take free of security interest or agricultural lien. (a) A security interest or agricultural lien is subordinate to the rights of: (i) A person entitled to priority under section 34.1-9-322; and (ii) Except as otherwise provided in subsection …

No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers. (a) A debtor that has sold an account, chattel paper, payment intangible or promissory note does not retain a legal or equitable…

Rights and title of consignee with respect to creditors and purchasers. (a) Except as otherwise provided in subsection (b), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the co…

Buyer of goods. (a) Except as otherwise provided in subsection (e), a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security …

Licensee of general intangible and lessee of goods in ordinary course of business. (a) In this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights o…

Priorities among conflicting security interests in and agricultural liens on same collateral. (a) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rul…

Future advances. (a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under section 34.1-9-322(a)(i), perfection of the security interest dates from the time an advance is made to the extent that the securit…

Priority of purchase-money security interests. (a) Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise…

Priority of production-money security interests and agricultural liens. (a) Except as otherwise provided in subsections (c), (d) and (e), if the requirements of subsection (b) are satisfied, a perfected production-money security interest in production-money crops has priority ove…

Priority of security interests in transferred collateral. (a) Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if: (i) The debtor acquired the collateral …

Priority of security interests created by new debtor. (a) Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective t…

Priority of security interests in deposit account. (a) The following rules govern priority among conflicting security interests in the same deposit account: (i) A security interest held by a secured party having control of the deposit account under section 34.1-9-104 has priority…

Priority of security interests in investment property. (a) The following rules govern priority among conflicting security interests in the same investment property: (i) A security interest held by a secured party having control of investment property under section 34.1-9-106 has …